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Duration 14 hours
Course Outline
The Global Capital Markets
- Defining the ‘financial market place’
- The historical evolution of contemporary global financial markets
- The influence of financial media
- Architectural overview of major capital markets:
- Exchanges, clearing houses, and regulators
- The modern acceleration of global investment
- Variations in ‘Stock Exchanges’
- The position of Stock Exchanges within today’s market ecosystem
- Comparison of US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital adequacy standards
- Basel I framework
- Basel II framework
- Basel III and its broader implications
- Drivers for new product development
Asset Classes and Their Corresponding Markets
- Current trading instruments on Stock Exchanges
- Equities – Common and Preferred stock
- Bonds – Corporate and Government issuances
- Bonds – Fixed, floating, and zero-coupon; understanding the Yield Curve
- Money market instruments
- Currency markets
- Investor motivations for buying and selling
- Income versus Capital Gains
- Interdependencies among various asset classes
- The interplay between Exchange-traded and Over-The-Counter (OTC) markets
Short Term Money Markets
- Certificates of deposit
- Treasury Bills (T-Bills)
- Commercial paper
- Trade paper and bankers’ acceptances (BAs)
- Standard market norms and practices
- Key market participants
Types of Stock Exchange Investors
- General investors
- Fund managers
- Hedge funds
- Direct Stock Exchange participants
- Investment banks, stockbrokers, hedge funds, and prime brokers
- Intra-market dynamics – understanding the buy and sell sides of the industry
The Role of the Stock Exchange
- Trading venues for these products
- The critical importance of the OTC market
- Historical growth and development of Stock Exchanges
- Leading Stock Exchanges in the current global landscape
- Architectural differences between US, European, and Asian markets
- Asset classes traded on Stock Exchanges worldwide
- Overview of major Primary and Secondary markets
- Key hubs: New York, Euronext, London, Shanghai, and Hong Kong
- The appeal of “listed” companies to investors
- Leveraging Stock Exchanges for liquidity pooling and capital raising
- Strategies for Capital Raising
- ‘Floating’ a company – various methodologies
Clearing & Settlement
- Settlement mechanics and settlement risk
- Diverse Settlement Conventions in major markets
- Handling Equities, Bonds, and derivatives
- The Derivatives Clearing process
- The function of the Central Counterparty (CCP)
- CCP services offered to Stock Exchanges
- Margin requirements
- The security trade settlement workflow
- Pre-settlement procedures
- Final settlement
- Common issues – unmatched trades, settlement delays, and failed deliveries
- Settlement discipline within Stock Exchanges
- The ‘life cycle of a trade’ – tracing the process from execution to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – including LCH.Clearnet, Euroclear, CREST, Clearstream International, and the DTC
Custody
- The function of Custodians in Stock markets
- Settlement and safekeeping services
- Income collection and processing Corporate Actions
- Cash management and funding transactions
- Value-added services
- Accounting practices
- Stock lending and collateral management
- Trustee services
- Valuation reporting
Alternative Investments
- Defining Alternative Investments
- Structured products - Associated risks and returns
- Hedge funds - Risk management and control
- Venture Capital - Valuation challenges, risk, and control
- Private Equity and Angel Finance
- The application of derivatives in Asset Management
- OTC versus ETD (Exchange Traded Derivatives)
- Categories of Derivatives used in Asset Management
- Futures markets
- Options markets
- Risks and controls related to derivatives, including documentation, valuation, and reporting complexities
Managing Quoted Equity Investments
- Risks involved in acquiring securities
- Risks associated with ongoing securities management
- Risks stemming from corporate actions
- Pricing mechanisms for quoted equity investments
- Key sources of risk
- General control mechanisms within equity investment
- Risks specific to international equity markets
Managing Quoted Fixed Income Investments
- Risks in acquiring and disposing of fixed income securities
- Utilizing credit ratings and associated risk considerations
- Risks related to the pricing of fixed income securities
- Risk and control frameworks in corporate fixed income processing
- Risks associated with Government Securities
- Sovereign credit ratings
- Valuation methods for government securities
- Risk and control frameworks in sovereign bond processing
Market and Credit Risks in Global Market Investing
- Overview of Market risks
- Value at Risk (VAR) calculations
- Market risk modeling techniques
- Overview of Credit Risks
- Methods for measuring Credit risks
- Global Market Risks
- Money Market Risks
- OTC Risks
- Exchange-related risks
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.
